Larry .....For NOI calculations all annual property operational expenses are deducted from annual collected revenue, with the exception of your leveraged cost of borrowing. Interest or principal is not an expense. Debt service comes below the NOI line. In analyzing and making any kind of proforma projection be careful of the word "fixed expenses" as property tax is usually not fixed. Property taxes usually vary from fiscal tax year to fiscal tax year. The variance will be different from State to State and most often from governmental jurisdiction to governmental jurisdiction, since counties and cities also have a play in property taxes. Good luck Larry..........Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

absolutely, the property tax directly impacts your net operating income. If the property is a NNN property then the expense & collection from the tenant would wash this out, but it needs to be factored into any investment decisions

Absolutely, NOI is calculated as revenue-expenses; taxes are clearly an expense. Depending on the leases the taxes might be billed back to the tenant (in a NNN lease) but it would still be an expense and the increase from the collection of the CAM charges would go to income (or a contra expense depending on how you want to book)